Climate lobbying analysis for investors on European corporations

An InfluenceMap Note for Investors
October 2018

About InfluenceMap's Climate Lobbying Analysis

See global media coverage in The Financial Times, Bloomberg, The Telegraph, The Independent, and Forbes.

InfluenceMap conducted this analysis of 55 European companies chosen by investors - including the Church of England Pensions Board and Swedish Pension Fund AP7 - for increased scrutiny over climate lobbying practices. These companies were chosen for their high greenhouse gas emissions and significant role in energy intensive sectors.

Two key metrics arise from InfluenceMap's analysis of corporate climate policy lobbying, with the numerical scores on the 55 companies available at the download button below. In this download, each company is listed with a hyperlink to its InfluenceMap online profile. These profiles contain InfluencMap's full analysis of the climate lobbying activities of each company.

  • The Climate Policy Footprint is a measure of the relative impact a company is having on climate policy globally. The measurement combines three independent metrics: (1) the level of support or opposition to climate policy the company demonstrates; (2) the intensity of this lobbying activity; and (3) the company’s overall economic size. The Climate Policy Footprint score range is -100 to +100. Larger negative scores represent a larger negative impact, with positive scores representing a positive overall impact. The Climate Policy Footprint metric is explained in detail in InfluenceMap’s 2017 Carbon Policy Footprint report.

  • The Misalignment Score represents the contrast between a company's stated positions on climate change policy and its actual impact on policy through its trade associations. Here, the larger the score, the greater the contrast between the company and its trade associations. This ranges from 200 (highly misaligned) to 0 (perfectly aligned).The Misalignment Score is explained in detail in InfluenceMap’s 2018 Trade Associations and Climate: Shareholders Make Themselves Heard report.

Across the sectors covered, the most powerful and climate oppositional companies include; BASF and Bayer (chemicals); Rio Tinto and ArcelorMittal (Mining and Metals); BP (Oil and Gas); and RWE (utilities). The auto sector in Europe is notable for its consistently poor performance on climate lobbying.

The results show Royal Dutch Shell, BP and Siemens to be the most misaligned with their trade groups on climate change policy, all scoring over 100 on their Misalignment Scores.

The most powerful and climate supportive companies are Unilever, SSE, Iberdrola, National Grid and Nestle, all scoring over + 30 on their Climate Policy Footprint.

In terms of sectors, chemicals, automotive and oil and gas appear as the most negative on climate policy and the most generally misaligned, indicating a high degree of positive top line messaging from the companies in these sectors which is not matched by their actual lobbying practices.

InfluenceMap’s methodology ensures the assessment of corporate influence over policy is done in an objective and consistent manner. This allows the resulting analysis and metrics to be relied on for comparisons of corporate behavior. The definition of “policy influence” is derived from the 2013 UN Guide for Responsible Corporate Engagement in Climate Policy. All company or trade association positions are measured against a benchmark of “Paris-aligned” climate and energy policy put forward by relevant regulatory bodies, including the European Commissions' Directorate-General for Climate Action (DG Clima) and national climate regulators. All company and trade association assessments are based on thorough analysis of public disclosures, including legislation consultations, organization websites, financial filings, and transcripts of CEO and senior management messaging. The platform archives over 50,000 pieces of evidence on 250 global companies, 75 leading trade associations and the links between them. InfluenceMap’s content is in use by over 100 major institutional investors, including Legal and General Investment Management (in its Future World Fund), and the Climate Action 100+ initiative (involving 310 investors with more than USD $32 trillion in assets under management).